In this article, you will know the importance of ethics in business , ethics of entrepreneurship and economic system and some desirable values that entrepreneurs should have based on societal norms, culture and virtues. There is no system of wealth creation without a system of values. People are prepared to accept others getting high pay and enjoying different lifestyle but only if they have the feeling that the system is fair and that the law is the same for everybody.
Business ethics bring ethical theories and techniques to bear on moral issues that arise in business. For example, what are the responsibilities of corporations to their employees, their customers, their shareholders and the environment? Business ethics also address larger topics, such as the ethics of globalization and the moral justification of various economic systems, such as capitalism and socialism.
Business ethics can be examined from various perspectives, including the perspective of the employee, the commercial enterprise, and society as a whole. Very often, situations arise in which there is conflict between one or more of the parties, such that serving the interest of one party is detriment to the other(s). For example, a particular outcome might be good for the employee, whereas, it would be bad for the company, society or vice versa.
Importance of Ethics in Business and Society
The importance of ethics in business, necessity of ethics in Business and society. There are several reasons why ethics is important in business namely:
To enhance competition
Ethics enhance competition when standards are adhered to, for example the ethics of handwork, thrift, frugality and self-improvement were responsible for the industrial revolution of the 18th century.
To preserve legitimacy
Preservation of legitimacy is one of the importance of ethics in business. If a company produces illegitimate products that is claiming the values which they do not have, it will have to struggle to keep them in the market. A company, therefore, cannot afford to let the legitimacy of its products come into question.
To deter white-collar crime
These include offences such as petty theft, taking sick leave when a person is not sick, getting paid for overtime not worked, faking injury to receive compensation, taking care of personal business at the expense of company time, taking kick-back from suppliers and big time crimes in corporations and ministries.
To promote trust
Ethics matter in promoting trust and preventing debilitating contacts. Successful company management, employees and shareholders build on network of trust, that binds management, employees and shareholders. Issues of fairness and division of spoils can divide a company and make it difficult to function and it can ruin an organization.
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